The Cubs were believed to be one of several teams to submit a qualifying bid on Thursday for Ryu, 25. The Rangers, Indians, Phillies, Angels and Dodgers were presumed to be the other suitors, with the Dodgers securing the right to negotiate with Ryu.
A source told MLB.com the highest bid was $25.75 million, which the Hanwha Eagles accepted. The Dodgers have 30 days to negotiate a contract with Ryu's agent, Scott Boras.
Ryu made his professional debut in 2006 and went 18-6 with a 2.23 ERA and 205 strikeouts in 201 2/3 innings that season, winning both Rookie of the Year and Player of the Year honors in Korea. He helped the South Korean national team win gold in the 2008 Beijing Olympics, beating Cuba in the championship game.
This past season, the left-hander was 9-9 with a 2.66 ERA, 1.09 WHIP in 27 starts, striking out 210 over 182 2/3 innings.
The Cubs are in the market for at least two starting pitchers to join Jeff Samardzija, Matt Garza and Travis Wood.
Carrie Muskat is a reporter for MLB.com. She writes a blog, Muskat Ramblings, and you can follow her on Twitter @CarrieMuskat. This story was not subject to the approval of Major League Baseball or its clubs.